Estated Revenue, Valuation & Funding (2024)

Estated reported annualized recurring revenue of $1.68 million as of mid-2021, with monthly recurring revenue of approximately $140,000. The company ended 2020 at $900,000 in ARR, up from less than $300,000 in full-year 2019 revenue. CEO Josh Fraser told Latka that the company started January 2021 at $77,000 in MRR and expected to cross 200 percent year-over-year growth by year-end.

Estated had 151 customers as of the August 2021 interview. Named customers include Blend, SoFi, State Farm, Swiss Re, USAA, Walmart, and Lowe's, spanning FinTech, InsurTech, and large retail. Fraser noted that Walmart and Lowe's engagements were in pilot stages at the time.

Average revenue per user was $929 per month, as reported from the company's ProfitWell account. The lifetime value figure Fraser cited from ProfitWell was $54,268 per year. Estated's contracts are structured as either annual data licensing agreements or volume-based API subscriptions; Fraser said both are tracked as subscriptions in ProfitWell. Pricing details beyond the $929 monthly ARPU were not discussed, and no free tier was mentioned.

Estated operates two revenue models: annual data licensing contracts, updated monthly and treated as subscriptions, and volume-based API subscriptions priced per call volume. The API processed approximately 6 to 7 million successful calls per month as of mid-2021, with total inbound requests including bad or unclean addresses reaching approximately 20 million per month.

The company reached profitability approximately three months before the August 2021 interview, after burning through its $3 million seed capital across 2018, 2019, and 2020. Fraser stated no intention to return to cash-burn mode within the next three to four quarters. Gross revenue retention was 99.2 percent and net dollar retention was 101 percent as of July 2021, reflecting low churn and modest expansion. Fraser said the company targets monthly churn of 1 percent or below, and described customer churn as hovering in the 1 to 2 percent monthly range.

On the sales and marketing side, Estated spent $29,000 on paid advertising in June 2021 across Google AdWords, Facebook, LinkedIn, and Bing, generating 415 leads at an average cost per lead of $72 and a lead-to-customer conversion rate of 2 percent, yielding 8 new customers that month. The company had one salesperson at the time of the interview following the departure of two sales reps the prior month. Fraser was recruiting a replacement with a quota target of $1.2 million annually, a 10 percent commission rate, a base salary of $50,000 to $60,000, and an on-target earnings figure of $150,000. The recruiter fee for this hire was approximately 20 percent of base salary, sourced through LMRE Tech, a prop-tech-focused recruiting firm. Blog content and thought leadership were cited alongside paid search as growth channels. Estated had approximately 20 reviews on G2 as of the interview, described as nearly all five-star ratings.

Estated had 12 full-time employees as of August 2021, including 7 engineers. Fraser described the team composition as engineering-heavy, with two finance staff and one salesperson rounding out the non-engineering headcount. The engineering team is fully remote, with one engineer each in Russia, Germany, and Brazil, and four based in British Columbia.

Fraser used VanHack, a Vancouver-based engineering recruitment firm, to source international engineers, paying VanHack directly for the first year before converting engineers to full-time employees upon immigration to Canada. The company also used LMRE Tech for sales recruiting.